10X Genomics (TXG) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was $151.7M, down 1% year-over-year, mainly due to lower instrument sales and sales restructuring, partially offset by higher consumables revenue.

• Gross margin improved to 70% from 62% year-over-year, driven by favorable product mix.

• Operating loss narrowed to $41.5M from $94.8M in Q3 2023, reflecting lower operating expenses and absence of prior year in-process R&D charges.

• Net loss was $35.8M, a significant improvement from $93.0M in Q3 2023.

• Launched new products: GEM-X Flex, GEM-X Universal Multiplex, and Chromium Xo, aimed at reducing cost per cell and expanding market reach.

Financial highlights

• Q3 2024 revenue: $151.7M (down 1% year-over-year); nine months revenue: $445.8M (up 3%).

• Consumables revenue grew 10% to $126.2M; spatial consumables up 111% to $29.7M, while Chromium consumables fell 4% to $96.5M.

• Instrument revenue dropped 45% to $19.1M, with Chromium instruments down 38% and spatial instruments down 50%.

• Operating expenses decreased to $147.9M from $190.3M, mainly due to lower R&D and SG&A costs.

• Cash and cash equivalents at September 30, 2024: $398.2M.

Outlook and guidance

• Full-year 2024 revenue guidance lowered to $595M–$605M, a 3% decrease from 2023 at midpoint.

• Q4 revenue expected to be flat sequentially, with no typical seasonal uptick due to ongoing macro and internal headwinds.

• Management expects continued cautious customer spending and macroeconomic headwinds to impact growth.

• Anticipated capital expenditures of $15–$20M over the next 12 months for manufacturing and R&D equipment.

• Management expects continued operating losses in the near term as investments in growth and innovation persist.